The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Can you hear me now?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Sorry about that, I was on mute. So first, just curious. So since the election, have you guys seen any notable changes in demand from your customers?
It seems like just talking to others in the industry, they talked about the election being a distraction for the end consumer. So curious to get your
thoughts on what you've seen so far.
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: That's good to hear, certainly encouraging. And then in terms of the new casegoods collections, you talked about the speed to market certainly
driving that. How impact -- I'm sorry, how impactful could that be for the fourth quarter as you look to get those products to retailers?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: All right. That makes a lot of sense. And you've done a nice job improving the gross margin at HMI. Do you think you can further improve from
here? What are your thoughts there, Jeremy?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: Got you. And so as far as the inventory situation here -- so you talked about having excess inventories. Overall, your inventory was higher at the
end of the third quarter than we expected.
So how would you describe your current inventory position and the quality of that inventory? And any goal for your inventory at the end of your
fiscal year?
Question: Anthony Lebiedzinski - Sidoti & Company - Analyst
: All right, yeah. That makes a lot of sense, okay. And then lastly for me before I pass it on to others. So Jeremy, I know you were very upbeat about
the Margaritaville launch when you announced this, I believe, in October. Can you provide any more details as to how impactful that deal could
be for you guys?
Question: Dave Storms - Stonegate Capital Partners, lnc. - Analyst
: Just wanted to ask my first question around the macro demand environment going into this holiday season. Is there any potential to see continued
discounting through the back part of this year?
Question: Dave Storms - Stonegate Capital Partners, lnc. - Analyst
: Apologies. Just around the macro environment and the holiday season coming up, is there any potential for continued discounting as you go into
the back quarter of the year?
Question: Dave Storms - Stonegate Capital Partners, lnc. - Analyst
: Understood. And then just wanted to touch on the bankruptcy. Are there any other customers that you're seeing as highly at risk? And is there any
recourse to recover some of that write-off?
Question: Dave Storms - Stonegate Capital Partners, lnc. - Analyst
: Understood. And then I did have another question around the licensing deal. I was hoping you could speak a little more around the logistics and
next steps and maybe what early wins would look like. It looks like this is a decent amount of white space for you all.
Question: Dave Storms - Stonegate Capital Partners, lnc. - Analyst
: That's very helpful. And then just one last question for me, two quarter around cost savings. Should we expect any further severance costs in 4Q?
And then looking into the next year, should we expect the $10 million to be evenly spread out or would we expect that to be more back-end
weighted as those cost savings ramp?
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